More Details on Continental-UA Deal Per Tilton

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United Airlines’ Chairman and CEO Glenn Tilton went into more detail in his email to employees today.

In addition to the basics we mentioned earlier, Tilton also said:

“In addition to the network and customer benefits, we’ll work with Continental to find sources of cost savings and operational efficiencies that can be gained through cooperation in areas such as common technology, procurement, the use of facilities, including lounges. Within the limits of our agreements, we will explore opportunities to reduce spending by pursuing common contracts with suppliers and combining our considerable purchasing power. We will leverage shared information technology capabilities to develop world-class systems more cost effectively, and investigate the possibilities to standardize and optimize our real estate and lounge systems across the world. There is tremendous potential for both cost and operational efficiencies and new revenue, and we plan to explore every opportunity.”

That is an interesting paragraph. “Shared information technology capabilities…”

Well we all know that EDS just signed a huge contract with Continental not too long ago. So we would have to believe that perhaps this means United will join in this same effort to build a new res system in tandem with Continental?

Going through a couple of notes from you, one person suggested that this really does look like a “trial marriage” and that we should see a full-blown merger between the two airlines within 12-24 months. Sounds about right.

Another reader suggested that US Airways is not necessarily the biggest loser in this deal — but that American Airlines is, as American and British Airways were both courting Continental in an effort to give the oneworld alliance a nice kick in the pants.

What do you think?

One thought on “More Details on Continental-UA Deal Per Tilton

  1. thebeat

    Nice digging Holly. Seems to me that CO is more likely to join UA’s tech setup than the other way around. Amadeus calls it the Star Alliance Common IT Platform.

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